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Delivery and takeout have been just as important since the pandemic. Applebee's, Chili's, and other fast-food restaurants have been making headlines for their efforts off-premise to attract attention. Cracker Barrel however was equally active in developing its to-go business.

20% of the company's first-quarter sales were from delivery and takeout. This figure hasn't changed much despite returning customers to the restaurant. It doubled its efforts in increasing channel sales by launching two virtual brands and its first Ghost-Kitchen, which it believes will generate incremental revenue.

Sandra Cochran was the CEO. She stated that the program's strategic goal was to bring in guests who might not normally dine at a restaurant.

Chicken N' Biscuits, the first virtual brand, is now available at approximately 500 of the 664 restaurants. Delivery or pickup can be ordered through DoorDash or Uber Eats. Side dishes such as fried chicken, biscuits, and gravy are also available. Pancake Kitchen is available in over 100 locations. Cracker Barrel believes the brand can fulfill unmet demand for breakfast delivery in certain markets. Only pancakes are available on the limited menu.

Cracker Barrel opened its first Los Angeles ghost restaurant at the end of last month. The restaurant offers a simple menu that includes signature dishes as well as virtual brands.

Executives said that it was too soon to release details about digital properties' performance, other than the fact that sales so far have been "promising". These brands were launched late during the quarter and faced some supply chain issues. Cochran also pointed out that it was difficult to find chicken tenders for most of the quarter.

Now, the chain focuses on optimizing menus for brands and identifying restaurants that might be a good match.

Jennifer Tate, CMO stated that she would be adding beverages with a strong emphasis to increase sales and maximize margins.

Cochran said that the chain is based in Lebanon (Tenn.) and doesn't expect brands to increase their margins by creating sales. Third-party delivery fees make the company more expensive. However, Cracker Barrel's only Los Angeles location is free.

Tate said, "That's again 100% incremental for us as it gives us the opportunity to reach guests in areas like Los Angeles where there aren't Cracker Barrels nearby. The chain plans to open additional ghost kitchens in LA and other areas it would not be able otherwise.

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